Bitcoin’s declining dominance may pave the way for an altcoin resurgence by 2025

Confirmation of Bitcoin Dominance Decline – Indicators Point to Altseason in 2025

Bitcoin dominance, which tracks the proportion of the crypto market controlled by

, has recently dropped, suggesting a possible change in market momentum. This move is consistent with a wider pattern where investors turn to altcoins after Bitcoin's impressive run in 2024. Experts, such as Jelle, have observed that Bitcoin’s share is slipping, potentially signaling the start of an “alt season” in 2025—a time when altcoins have historically exceeded Bitcoin’s returns.

The decrease in Bitcoin dominance is further supported by the trends seen in the TOTAL3 index, which measures the total value of cryptocurrencies except for Bitcoin and

. According to Jelle’s analysis, TOTAL3 is entering a stage of price discovery, hinting that altcoins could reach record levels amid growing buying activity. This could mark a fundamental change in how investors are distributing their funds across the crypto market.

Market participants are also paying close attention to Bitcoin’s performance near important thresholds, such as the 4-hour 200 Moving Average (MA) at $98,139 and the 4-hour 200 Exponential Moving Average (EMA) at $95,881. Whether Bitcoin remains above these points will have a significant impact on the short-term direction of the market. If Bitcoin breaks above $98,139, it could fuel a continued rally toward $100,000, while falling below the EMA may lead to a prolonged phase of sideways movement.

Ethereum’s role in the market is also shifting. As a major platform for DeFi and smart contracts, Ethereum still commands a large portion of the DeFi Total Value Locked (TVL). Nevertheless, the competitive landscape is evolving, with other blockchains like

, , and various Bitcoin-based DeFi solutions gaining momentum. The emergence of DeFi on Bitcoin has been especially striking, with the total value locked in Bitcoin DeFi projects exceeding $66.8 billion in 2024. Initiatives such as are at the forefront, providing Bitcoin staking and linking up with mainstream DeFi systems, which highlights the increasing overlap between Bitcoin and the broader DeFi sector.

Looking forward, the adoption of artificial intelligence in decentralized finance—known as DeFAI—is poised to be a major growth driver. Estimates suggest that DeFAI could expand from $1 billion to $10 billion by the close of 2025, spurred by AI tools that enhance both user experience and efficiency. This momentum is likely to benefit from a more supportive regulatory setting in the US, helping to spur further advancements and uptake.

The next several months will be pivotal in determining whether current trends will develop into a full-scale alt season. Investors, traders, and developers are watching these shifts intently, as changes in capital flows could redefine the crypto market in 2025. With Bitcoin consolidating at key support and altcoins attracting renewed attention, the market appears primed for a broad-based breakout.